Kia Corp aims to boost its U.S. market position during the second half of the year through new gasoline and hybrid models which will drive sales growth despite rising U.S. tariffs among competitors.
Kia experienced a 25% decline in second-quarter operating profit because of 786 billion won ($570 million) tariff-related losses yet its U.S. sales increased 5% during the quarter as customers rushed to buy before price increases took effect. Kia aims to achieve 7% to 8% U.S. sales growth during the second half of 2025 to reach market share above 6% from its current 5.1% position.
The Carnival hybrid SUV together with the new K4 compact car serve as major drivers for the company’s growth. The company imports two-thirds of its U.S. inventory through imports but has not announced any price increases because it wants to expand its operations.
The current market instability presents an opportunity for Kia to build stronger U.S. operations according to CFO Kim Seung-jun. Kia plans to redirect U.S.-bound production to Canada and other markets as a way to reduce tariff impacts.
The analysts predict that Kia’s hybrid imports will reduce profit margins although cost reduction measures might mitigate this effect.
